OFFICIAL LIQUIDATOR Vs. R. BADRINARAYANAN AND OTHERS

JUDGEMENT

(1.) This application is filed by the official liquidator for taking action under section 543(1) of the Companies Act, 1956, against the respondents who are liable jointly and severally to contribute the said sum to the extent of Rs. 5,77,750 to the company in liquidation.

(2.) In paragraph 8 of the application, learned counsel appearing for the official liquidator has given the details regarding the amount on which misfeasance claim is raised. A perusal of the report at paragraph 7 shows that right from the beginning, the company was suffering loss and at one stage it had gone up to Rs. 1.92 crores eroding the net worth of the company. It is also stated that the company has settled the secured creditors and banking creditors before liquidation. The other creditors are only sister companies and outsiders.

(3.) Learned counsel appearing for the respondents brought to my attention the consent letter from the sister concern, which is found at pages Nos. 39 and 40 of the typed set of papers confirming the no claims of M/s. Ranga Management Consultants P. Ltd., as well as by M/s. Horticultural and Construction Engineerings (India) P. Ltd. As regards the rest of the claims, according to the respondents, either they have become time barred and none had made the claim before the official liquidator. The report of the official liquidator, read that there were loss caused by the respondents which are under loss causing serious impact on the company's net worth. The loss suffered in the business activity as such deserved to be fastened with the liability to be taken under sections 542 and 543 of the Companies Act, 1956.